Bitcoin Loaning - Is it worth it?

[Fishbones78]

Hi,
So something I've been thinking about is lending Bitcoin. For me to conduct trades over Bitcoin Talk, I usually ask the other party pays first (which usually means the trades fall through).

• Is it actually profitable?
• Will I get scammed to death?

Cheers.

[gerXhonza]

If there is a chance of you being scammed then you will surly be scammed. Only ever loan Bitcoin if you can get a trusted 3rd party to hold collateral at 110%-120% of the value of the loan, which will at least cover you when they default. I doubt it is very profitable in all honesty.

[Fishbones78]

If there is a chance of you being scammed then you will surly be scammed. Only ever loan Bitcoin if you can get a trusted 3rd party to hold collateral at 110%-120% of the value of the loan, which will at least cover you when they default. I doubt it is very profitable in all honesty.

Ah okay, thanks. But what really is collateral? If someone says they'll give a domain name for example, how do I know that really is worth more than the loan?

[Metadextrous]

Hi,
So something I've been thinking about is lending Bitcoin. For me to conduct trades over Bitcoin Talk, I usually ask the other party pays first (which usually means the trades fall through).

• Is it actually profitable?
• Will I get scammed to death?

Cheers.

Is it profitable? Yeah if you could find trusted loaners which is hard these days.
Will you get scammed? Now isn't the right time to loan your money to someone else i think, too much scammers roam around bitcointalk atm. But, if you do it right you could get a stable income which is great.

[mattiadeabtc]

Hi,
So something I've been thinking about is lending Bitcoin. For me to conduct trades over Bitcoin Talk, I usually ask the other party pays first (which usually means the trades fall through).

• Is it actually profitable?
• Will I get scammed to death?

Cheers.

if you use the right precautions to me it is a  profittabile deal, first rule of lending, NO collateral, no loan, if you do this your % of lost your money  is less

[maku]

You can gain pretty much from lending lending BTC. But if you are not careful you can also lost all your money. Bitcoin give people some sort of anonymity therefore scam attempts while lending money are normal.
You need to create for yourself set of rules and always play by the book. Never lend btc without proper collateral, even if someone is trusted. Also you may want to have limit on how much BTC you can lend.

[MadGamer]

Hi,
So something I've been thinking about is lending Bitcoin. For me to conduct trades over Bitcoin Talk, I usually ask the other party pays first (which usually means the trades fall through).

• Is it actually profitable?
• Will I get scammed to death?

Cheers.

If you want to loan on bitcointalk then you should use Escrow to hold collateral or something and be sure of the valueof the collateral (Take Senior members or above i'd say) , yes it's profitable but you may get scammed .
there is also Bitfinex & BTCJam which are professinoal website for loaning and stuff you could get scammed AFAIK but they will give you the informations of the loaner if it happens (that's on btcjam , not sure about bitfinex)

[Fishbones78]

Thanks for the replies.
Do people still scam if they give decent collateral? I was planning on asking for collateral with every trade anyway, I think it would push away most scammers, but not all of them...
I need some BTC first to be honest, I lost it all a while ago and have only just got back into it. Trying to trade, but my member status and ability to trust complete strangers is holding me back a little 

[Metadextrous]

Thanks for the replies.
Do people still scam if they give decent collateral? I was planning on asking for collateral with every trade anyway, I think it would push away most scammers, but not all of them...
I need some BTC first to be honest, I lost it all a while ago and have only just got back into it. Trying to trade, but my member status and ability to trust complete strangers is holding me back a little 

If you are still concerned, try the escrow service that is given by trusted members. It could minimalize scam risk

[LFC_Bitcoin]

Hi,
So something I've been thinking about is lending Bitcoin. For me to conduct trades over Bitcoin Talk, I usually ask the other party pays first (which usually means the trades fall through).

• Is it actually profitable?
• Will I get scammed to death?

Cheers.

I personally don't loan out any of my bitcoins & don't plan to. A lot of people do it successfully though & earn decent interest. You need to be careful who you deal with though as there is a high probability of getting scammed.

Look for people with positive trust (click on their profile, you'll see I have a trust score of 4 (-0) (+2) which means I have 0 negative feedbacks & 2 positive so somebody like myself would usually be safe to deal with).

Try & take a collateral as a condition of the loan, there are many escrow providers around here who can advise you well. Seek out Quickseller.

[XinXan]

It's a tedious process honestly, yea you could ask for collateral and if they give you altcoins is all good but bitcointalk accounts as collateral are just painful, you have to either sell them which you might not be able to do so fast or join a sig campaign and pay for the loan yourself which is tedious so if someone ends up not paying you have to be dedicated to it and recover your money using your time.

[NorrisK]

I wouldn't do it. The risk far outweighs the reward in most cases.

Regarding collateral. Make sure it is something of high demand  so you can sell it easily. A domain may not be as good as you think as you need the right buyer for it.

[AtheistAKASaneBrain]

What if you use BTCJam and do lending only for the A+ guys? To be A+ you need all sort of verifications, so it wouldn't be anonymous, which means they will do everything possible to be pay back. What would happen if they legitimately cant pay back tho, do BTCJam cover loses?

[Metadextrous]

What if you use BTCJam and do lending only for the A+ guys? To be A+ you need all sort of verifications, so it wouldn't be anonymous, which means they will do everything possible to be pay back. What would happen if they legitimately cant pay back tho, do BTCJam cover loses?

BTCJam is still a joke. A+ status doesn't really determine whether he/she is a scammer or not and there is lack of work from BTCJam to minimalize scammer

[JWMutant]

BTCLend hasnt been to bad, allows you to use collateral for your loan and has a international collection agency on retainer.

[ticoti]

The point is if you lend it in bitcoin or in $

because if you lend it in dollar and bitcoin goes up, you would have got more profit holding bitcoin than lending and with less risk

[Fishbones78]

It's a tedious process honestly, yea you could ask for collateral and if they give you altcoins is all good but bitcointalk accounts as collateral are just painful, you have to either sell them which you might not be able to do so fast or join a sig campaign and pay for the loan yourself which is tedious so if someone ends up not paying you have to be dedicated to it and recover your money using your time.

I think I might proceed with it actually. Alt coins seems a good, solid collateral, even if I don't receive many requests because of it, I atleast will come out well if I'm not paid back.
Thanks

[Whitehouse]

Hi,
So something I've been thinking about is lending Bitcoin. For me to conduct trades over Bitcoin Talk, I usually ask the other party pays first (which usually means the trades fall through).

• Is it actually profitable?
• Will I get scammed to death?

Cheers.

It can be profitable but the margins are small and the risk is great if you don't get sufficient collateral. How can the other party pay first though if you're the one lending the money? Do you mean send collat first? Most people wont trust you yet to send collateral first so you'll need to use escrow. Personally I'd avoid getting into the lending business as it's likely not worth the hassle and one scam is all it takes to ruin your total profit.

[Fishbones78]

Hi,
So something I've been thinking about is lending Bitcoin. For me to conduct trades over Bitcoin Talk, I usually ask the other party pays first (which usually means the trades fall through).

• Is it actually profitable?
• Will I get scammed to death?

Cheers.

It can be profitable but the margins are small and the risk is great if you don't get sufficient collateral. How can the other party pay first though if you're the one lending the money? Do you mean send collat first? Most people wont trust you yet to send collateral first so you'll need to use escrow. Personally I'd avoid getting into the lending business as it's likely not worth the hassle and one scam is all it takes to ruin your total profit.

I ment collateral haha, I was planning in using an Escrow anyway, thanks for the input. I was planning on asking alt coins as collateral which may mean slow business, but a not so devastating outcome when I get scammed :/

[dothebeats]

Hi,
So something I've been thinking about is lending Bitcoin. For me to conduct trades over Bitcoin Talk, I usually ask the other party pays first (which usually means the trades fall through).

• Is it actually profitable?
• Will I get scammed to death?

Cheers.

First bullet: Yes, if you executed it perfectly and flawlessly. You can ask for 10% as the minimum interest rate for any loan and depending on how long will the loan term be.
Second bullet: Also yes, if you don't know how to sales talk the borrower. You must impose your own rules, and your rules should matter, not the borrower's. Always ask for a valid collateral when giving a loan. In that way in case the borrower defaults, you can take back what's lost in you and you can go on without accepting any losses.